IRIS Spring 2022 Full Features v22.1
The IRIS Accountancy Suite Spring release version 22.1.0 includes all legislative updates to ensure your ongoing compliance, including the latest SORP for LLPs, inclusion of the new CT600M form and extension to the increased AIA limit. The release also includes some great new features including a new report specifically for SECR and the ability to drilldown into some of the values in the SmartTax calculation. Plus, we have the ability for you to join the MTD ITSA HMRC Pilot via IRIS Personal Tax.
IRIS Accounts Production
New Limited Liability Partnership (LLP) Statement of Recommended Pratice (SORP)
On 17 December 2021 the CCAB finalized their revised SORP for LLP’s. This is effective for accounting periods starting on or after 1 January 2022. For accounting periods that start before this date, we have included a Data Screen to allow early adoption that enable the following changes:
- For LLP’s that produce a Cash Flow Statement, we have included the option for a new accounting policy for the Classification of share of profits. This can be found under the Data Screen Cash Flow Statement, Notes to the Cash Flow Statement, Classification of Share of Profits in Cash Flow Statement. The software includes the flexibility to show this policy either with the other standard accounting policies or within the notes to the Cash Flow Statement.
- To permit disclosure of the Members’ share of profits within the Cash Flow Statement, we have updated the Data Screen for Cashflow Statement, Financing Activities, Transactions with Members and have introduced three new fields above the default Payments to members’ field.
- To permit the disclosure of Member’s Drawings on account and Distributions of profit, within the Reconciliation of Members’ Interest statement, we have extended and updated the Drawings field within this Data Screen to show a revised narrative. This narrative can also be amended if required.
- The term ‘unallocated profit‘ has been updated in line with the new SORP. It is now referred to as ‘undivided profit‘. To adopt this change we have update groups 390 & 853 and corresponding account codes with the new description.
The implementation of these changes reaffirms our commitment to be first to apply the latest legislation across the IRIS product range, to continue to provide you with all the required tools for compliant accounts.
Streamlined Energy and Carbon Reporting (SECR)
In early September 2021 the FRC published their review into reporting on emissions, energy consumption and related matters under the SECR. As a result of this review, we have introduced a more comprehensive selection of Data Screens within the Report of the Directors section.
These allow you the option to create a wholly-separate report specifically for SECR. Should this be selected then we have included the appropriate signatory fields. Alternatively, this report can either form part of either the Report of the Directors or the Strategic Report where required. This broader approach has been designed to align more closely with the FRC’s findings.
These changes have been made available where applicable for both Limited Companies (including Charity formats, Group Accounts) and LLP’s.
Report of the Directors – Post Balance Sheet events
Following a request by a group of customers we have updated the disclosure for post balance sheet events within the Report of the Directors.
Previously these events were reported using a standard fixed wording, that referred to the equivalent disclosure in the notes to the financial statements. With this release, we have included a new Data Screens called Post Balance Sheet Events’, which will allow you to amend the default wording in both the heading and its detailed text.
Fixed Asset Investments increased Additional items – iXBRL labels
In Autumn’s release, we increased the number of available Subsidiaries, Associated Companies and Subsidiaries not in Parent. As part of this release, we have applied the relevant IXBRL taxonomy concept labels to each additional new item to ensure that greater levels of compliance are achieved when electronically filing accounts with Companies House or HMRC.
FRS105 Fixed Assets – Exception report
Previously when preparing accounts under FRS105 in the software, where there was a difference in the fixed assets between the carry forward and brought forward balances, an exception was not included within the exception report. As part of this release, we have included the relevant exception to ensure that it is easier to spot differences between comparable year on year balances.
International Accounting Standards (IAS) – report format updates
Using customer feedback, we have updated the reporting formats when preparing accounts under IAS.
Our first revision relates to the non-statutory income statement summaries report title. This has historically been fixed. As part of this release, you now have the option to edit it to something more appropriate.
The second revision relates to the Statements of Cashflows and to the disclosure of ‘Tax paid’. This again has historically been a fixed narrative. With this release you will now be able to edit this title. Both these marginal gains are aimed at improving report customisation.
The third revision relates to the inclusion of a format 1 Statement of Financial Position. A new tick box can be found Data Screen, IAS 1 – Options, called “show Statement of financial position totals in the order Assets – Liabilities – Equity” and this will modify the report output accordingly.
Finally, this release now includes also accounting policy for cash and cash equivalents. This policy can be found from within the Data Screens, Standard Accounting Policies, Cash and Cash Equivalents. The policy is triggered if appropriate balances are utilised in the chart of accounts such as deposit or cash in hand account types. The texted of the policy itself is prepopulated with content. However as with other notes this can be customised as needed. The policy can also be disabled, if required, by unticking ‘show the policy’ option at the top of the specific Data Screen.
Audit Report – Reference to Singular Shareholder or Member
Within the Data Screens for the Report of the Auditors, Options section we have included a tickbox to refer to Shareholders or Members as singular rather than plural.
IRIS Personal Tax
Making Tax Digital
Making Tax Digital functionality has finally arrived, we have updated the Personal Tax product to enable you and your practice in preparation for the MTD pilot (April 2022).
MTD functionality will run alongside the standard SA functionality and will simultaneously complete the clients SA return as well as giving the ability to complete in-year obligations where a client has been identified as MTD compliant.
In this release of IRIS, we have focused on delivering functionality which will allow you to complete the in-year obligations associated with income sources which are required to be submitted quarterly, this will include sole trade and UK property income.
All MTD related submission will be channeled through the IRIS Digital Tax Hub, where the software will guide you through the MTD workflow, highlighting any outstanding tasks to simplify a complex MTD workflow.
MTD functionality covered:
For Sole trade and UK property businesses:
- Retrieve obligations from HMRC
- Automatic creation of submission periods
- Submission of Income and expenses
- Submission of adjustments and allowances
- Live financial position of business (Held by HMRC)
- Submission of End of period statement
Drillable income sources
IRIS SmartTax calculation processed 5,100,000 tax calculations in the January month alone, bringing time saving to many practices across the IRIS user base.
We continue to deliver value added features to the SmartTax application. In this release of IRIS we have enhanced the Live tax calculation, with drilldown features for Sole trades and property income.
Where income has been received from Sole trades and/or Property, it is possible to drill into these income sources to review the detailed profit and loss for each trade and/or Property business.
Updated SmartTax calculation 2022 and 2023
We have now opened the 2022 tax calculation within SmartTax, so you can run live calculations against income entered within a clients 2022 tax year without the need to run a tax computation.
We will also be opening tax year 2023 shortly after the IRIS spring release to assist with forecasting.
Removal of disguised remuneration
From 2022 onwards the fields for disguised remuneration have been removed from the Employment, Self-employment and Partnership pages, to accommodate for this, the disguised remuneration data entry has been removed for tax years 2022 onward within IRIS Personal tax.
Box 11.1 (Number of days in the UK in order to carry out specified coronavirus (COVID-19) related work) on the SA109 is now redundant from tax year 2022, to reflect this change we have updated the data entry within Reliefs | Miscellaneous | Residence Questionnaire and removed the corresponding field.
- Box 2.1 on the R40 includes the expenses from box 2.9
- SmartTax incorrectly return calculation with ‘Employers gross amount’ when entered for personal pension contributions
- Description for gift aid is populating the occupation under employment expenses
- Exception warning displayed stating property income is lower than £1,000, where in fact it is over this amount
- Car Benefit not being correctly calculated for 2022
- Btrieve error displayed when attempting to claim to reduce payments
IRIS Business Tax
Controlled foreign companies CT600(B)
The controlled foreign companies’ data entry has been updated within IRIS business tax for limited companies to cater for the change that has been made to the CT600(B).
Additional data entry fields have been added to the existing functionality along with in field validation to ensure entries are made correctly first time to reduce unexpected validation at the generation stage.
Research and Development CT600(L)
SME Tax Credits
We have updated the SME R&D Tax credit data entry to accommodate for the additional information required on the CT600(L) when making an SME Tax credit claim.
You can now enter connected companies’ information where that company is part of a group and PAYE and NIC have been paid, this amount will then be automatically taken into consideration when calculating the restriction on payable tax credit on an SME claim.
SME RDEC claims
Updates have been made to the RDEC data entry to cater for claims made by SMEs against the RDEC scheme.
Within IRIS Business tax where a claim is made under ‘SME RDEC claim from work subcontracted to it by a large company’ and/or ‘SME RDEC claim from subsidised and capped work’ IRIS will automatically replace the tax credit with the corresponding amounts entered in accordance with the HMRC rules. This will assist with claims of this type and ensure that returns with RDEC claims are filed with a higher degree of accuracy.
The research and development data entry can be accessed via: Business Tax (LTD Client selected) Select ‘Research and Development (CT600L)’ from the treeview.
Freeport allowance CT600(M)
The government announced that an enhanced SBA is available on Freeports, the enhanced SBA will be available for qualifying assets brought into use on or before 30 September 2026. The enhanced rate is at 10% on a straight-line basis.
In line with this latest legislation HMRC has released a new supplementary form CT600(M) to cater for allowances claimed against Freeports.
In response to this legislation and new form, we have updated both the capital allowance and structures and building allowance data entry, which will automatically populate the necessary fields on the CT600/CT600(M) to ensure all information required by HMRC is completed.
On field validation has been implemented within the Freeport data (With structures and building allowance), to reduce any validation at the point of generating the return of internet submission.
A new treeview item has been added within IRIS Business Tax for limited companies to accommodate for the additional Exporter Information that has been added to the main return of the CT600.
This can be accessed via: Calculations | Exporter Information
This additional data screen allows you to confirm to HMRC whether the company exported goods/or services outside of the UK.
The government announced the extension of the temporary increase to the AIA limit. The £1,000,000 limit has been extended by 15months to 31st March 2023.
IRIS Business Tax has been updated to accommodate for this extension, automatically calculating the amount of AIA available and claiming against the applicable assets.
This change has been updated for Limited companies, Partnerships and Sole trades.
It is expected from 1st April 2023 that the AIA limit will revert to £200,000 per annum.
For Tax years 2022 onwards the fields for disguised remuneration have been removed from the SA800 return, to reflect this change, for partnership clients in business tax, we have removed all data entry for disguised remuneration.
- RDEC expenditure not saving for a multiple trade client resulting in no claim
- CT600(L) not being produced for an LTD with a period prior to April 2019
- LTD companies with a long period of account do not include super deduction within the capital allowances calculation
- SBA disposal details not saving
Zero Emissions – cars
HMRC updated all tax returns (SA100, SA800 and CT600) with separate fields to reflect the amount of capital allowances claimed against zero emission cars.
We previously updated the capital allowances data entry with a field, which allowed for assets to be identified as Zero emission cars. We have updated all the mapping through all products to complete these new fields on the corresponding returns.
Tax legislation and annual updates:
- Updated Dividends databases
- Updates to SA100, SA800, SA900, R40, and CT600 forms
- Updates to e-checklists for 2021/22
- All the updated reports, calculations and rates for the 2021/22 tax year
- Updates to Capital Allowances
- Increase NIC and Dividend tax rates (1.25%) for tax year 2022/23
Default to Billing Email Address when sending Fee documents
With the latest release we are improving the workflow around sending your Fee Documents to clients via e-mail. When you go to send a Fee Document (such as an Invoice, Statement, Credit Note etc.) to a client, the system will default to using the billing email address, rather than using the Main email address listed against the client.
This saves the user time, especially when sending multiple fee documents, as you no-longer will have to select the billing email address for each email you send out.
Schedule Time Ledger Updates
To improve the workflow of updating time postings to the Time Ledger, we’ve introduced the ability to schedule in a time ledger update using Windows Task Scheduling tool.
Using the scheduler, users can set the update to happen out of hours without requiring manual intervention. This will give a greater degree of flexibility to you as to when you wish to update the time ledger.
As part of IRIS’s ongoing commitment to the security of our customer’s sites, we are taking steps towards the removal of support for TLS 1.0 and 1.1 in the April release of IRIS Accountancy Suite, with the full removal of support coming into effect with our summer release.
This will initially come in the form of a patch release to install on top of the v22.1 installer. Those who wish to disable TLS 1.0 and 1.1 can request the patch from our support team. Communications will be sent out to all customers when the patch is available.